Politics · Germany · 11 hrs ago
CDU Economic Council Opposes Germany’s Planned Crypto Tax Reform
Germany’s Finance Ministry wants to tax crypto gains at a flat 25%, regardless of how long investors hold their coins.
Under the current rule, private investors can sell crypto tax-free after holding it for more than a year.
The CDU Economic Council opposes ending that holding-period exemption, citing costs, bureaucracy and uncertainty for investors and businesses.
The draft would protect crypto bought by the end of 2026, but investors unable to prove their purchase costs could be taxed on half the sale price.
The reform is part of a wider government plan to raise revenue, while a petition to keep the exemption has received more than 44,000 signatures.
The proposal has not reached the cabinet and remains under discussion between ministries, so its next step is unclear.
Germany’s CDU Economic Council has criticized the government’s planned reform of cryptocurrency taxation.
The proposal would end the one-year holding-period exemption and tax crypto gains at a flat 25 percent, regardless of how long assets are held.
The Council says the expected revenue is uncertain and does not justify the administrative burden or risks to investors and businesses.
The draft would preserve the exemption for crypto assets acquired by the end of 2026.
A planned cabinet discussion on the proposal did not take place on 14 October, and the draft remained under coordination between ministries.
- Who
- The CDU Economic Council opposes the reform proposed by Germany’s Federal Finance Ministry.
- What
- The proposal would tax crypto gains at a flat 25 percent and end the one-year holding-period exemption, with protection for assets acquired by the end of 2026.
- When
- The draft was published on 8 September 2026. A planned cabinet discussion on 14 October did not take place.
- Where
- Germany.
- Why
- The Council argues that expected revenue is too low and uncertain to justify the administrative costs, and says the proposal could disadvantage long-term investors and create legal and investment uncertainty.
CDU Economic Council
German government
Expected revenue and costs
CDU Economic Council
The Council says the projected revenue is too small and uncertain to justify administrative and compliance costs.
German government
The government plans the reform as part of a broader revenue package; the source says it aims to raise revenue and restore fairness.
Effects on investors
CDU Economic Council
The Council says ending the holding-period exemption would disadvantage long-term investors and favor short-term speculation.
German government
The proposal would tax crypto gains at a flat 25 percent regardless of holding period, while protecting assets acquired by the end of 2026.
The Federal Finance Ministry published a draft of the reform.
The ministry formally sent the draft to associations for comment.
The deadline for associations to submit comments passed.
A planned cabinet discussion did not take place, and the proposal remained under coordination between ministries.
- Proposed tax rate
- 25 percent flat withholding tax on crypto gains
- Existing exemption
- Gains may be tax-free after more than one year of holding
- Draft protection
- Assets acquired by 31 December 2026
- Projected 2028 revenue
- €83 million in additional revenue
- Petition support
- More than 44,000 signatures
3 sources
What people are saying
With the planned reform of cryptocurrency taxation, costs and expected revenue are not in a convincing relationship, as practical implementation presents major challenges for tax offices, companies and investors.